Hartford Business Journal

www.HartfordBusiness.com • May 21, 2018 • Hartford Business Journal 15 allow our towns to pursue economic development efforts, using broad- band as a tool," Bye wrote. Despite the "any purpose" lan- guage, PURA commissioners instead based their final decision this month on a perceived conflict between state and federal laws. They said municipal-gain broadband network creates "preferential access" for some, and could run afoul of the federal Communications Act, which requires that cable television and tele- com providers receive "nondiscrimina- tory access" to utility poles, and bars local authorities from inhibiting any entity from providing telecom service. "Providing municipal entities free access to the communications gain for the purpose of offering competi- tive telecommunications services … appears to be inconsistent with these principals and other aspects of federal law," the decision reads. Fewer options As cities and towns weigh their future broadband op- tions, Northwest Connect is put- ting the finish- ing touches on an OCC-funded report that aims to highlight the dwindling num- ber of potential options for get- ting a municipal network built — all of which come with their own uncertainty and complications, according to Northwest Connect's Maxwell. One option would be to copy what East Hartford is doing. The city last year signed an agree- ment with SiFi Networks, which would invest its own money to bury a fiber network under city-owned rights of way, avoiding utility poles. SiFi CEO Ben Bawtree-Jobson said his company has finished surveying residents and businesses to gauge interest in buying internet service, but he doesn't expect to announce next steps for several months. "We are evaluating the rulings impact but at this time envisage limited or no impact on the project," Bawtree-Jobson said. William Vallee, state broadband policy coordinator at the Connecticut Broadband Office within OCC, called SiFi's private equity, public-private partnership "magnificent," but noted that the economics wouldn't work in every area of Connecticut, particu- larly in more rural areas, because expected revenues wouldn't cover capital and operating costs. That includes Northwest Connect. "There is no revenue stream that allows us out here to pay back the money to build the network," Max- well said. That means taxpayers would al- most certainly have to foot the bill. Other ways to avoid municipal-gain uncertainty, according to Maxwell, would most likely involve paying for space on the pole, which could increase costs. Municipalities could do that by forming a utility company or a "competitive local exchange carrier" (CLECs) — two types of entities that rent space on Fron- tier's poles. Maxwell said ei- ther option would likely be compli- cated and have legal hurdles. All participat- ing towns would have to approve becoming part owner of a new entity, which would also have to win regulatory approvals. In addition, the municipal-utility pathway may face skepticism due to some relatively recent history that telecoms use as a cautionary tale. In the mid-2000s, a municipal util- ity in Groton borrowed $35 million to build an internet and cable network, Thames Valley Communications. But the network lost money and couldn't add enough customers to get out of the red. Groton sold the network, which is still in operation today, for just $150,000 in 2013, losing tens of millions of dollars. East Hartford broadband team: Mayor Marcia Leclerc (center) with East Hartford Finance Director Michael Walsh (left) and SiFi Networks President Scott Bradshaw (right). Consumer Counsel Elin Katz's office may appeal PURA's recent decision. PHOTO | HBJ FILE PHOTO | HBJ FILE 160 years Please join us to celebrate of innovation with SATURDAY, JUNE 16, 2018 Hartford Marriott Downtown Hartford, CT | 6 p.m. Tickets are $250 per person. Reserved table of 8 - $3,000. For an invitation or more information, contact: Margaret Lawson at 860.558.5026 or email: specialgifts@ctpublic.org DRESS IS CREATIVE BLACK TIE. Wear your favorite hoop skirt or space suit (if you have one) Or your favorite cocktail attire. Proceeds to benefit Connecticut Public's "Made in Connecticut" Program Presented by: Title Sponsor: Take a walk down the Red Carpet and be interviewed by a celebrity journalist. Don't miss this exciting evening.

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